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Offshore With-Profits MVA-Free Options

MVA-Free Options - Only Applicable to the Premier Bond 2

If your MVA-free date is approaching, it’s important to carefully consider all your options.


First of all it is important to understand the difference between the bond and the fund(s) in which you have invested. Your bond does not have a specified investment term or maturity date and can continue for the whole of your life. And although the Offshore With-Profits Fund does not have a specified investment term either, it does have a market value adjuster (MVA)-free date, which would have been fixed on the day you invested in the fund.


On the MVA-free date you have a number of options available to you, which are explained below.


We recommend you carefully read all the options available to you and discuss them with your financial adviser before making a decision. We also recommend you consult your financial adviser on the taxation treatment of regular withdrawals in your country of residence if you are considering taking this option.


What are your MVA-free date options?


1. Keep your bond as it is and don't do anything

If you are happy with your bond you can leave it as is, especially if your personal circumstances and financial goals haven’t changed. You can remain invested in the Offshore With-Profits Fund and receive a new MVA-free date in three years time.


2. Switch all or part of your money to another fund

If the Offshore With-Profits Fund is no longer meeting your investment needs, you can select from a range of internal funds to suit your attitude to risk. Your first 12 switches per year are free of charge. To see the range of internal funds available visit the Premier Bond 2 fund centre.


3. Start taking MVA-free regular withdrawals from your Offshore With-Profits Fund

On the MVA-free date you can choose to take MVA-free regular withdrawals, up to a maximum of 10% of the original value of your Offshore With-Profits Fund each year.


Regular withdrawals can be deducted on a monthly, quarterly, half-yearly, or yearly basis. The minimum that can be taken from the bond at any one time is currently £200 ($300 or €300).


If you are already taking regular withdrawals from the Offshore With-Profits Fund, and you choose to remain invested in the fund after the MVA-free date, your withdrawals will continue unless you tell us otherwise. If you would like to increase or reduce your regular withdrawal amount, please tell us on the regular withdrawal form.


If you cancel your existing regular withdrawals and wish to start them again at a later date, an MVA may apply.


4. Take a one-off withdrawal from your Offshore With-Profits investment

You can take a one-off withdrawal from your investment right now and leave the rest invested.


5. Take a combination of options 2, 3 or 4



What next?


If you have chosen option 1 then you don't need to do anything.


I you have have chosen option 2, 3, 4 or 5 then you need to complete the relevant servicing form and return to us at least five days before your MVA-free date to ensure we can process your requirements in time.


The MVA-free date information pack opposite contains all the forms you need.


If you have any questions about your options speak to your financial adviser in the first instance.


We also have a specialist area of our customer services team who will be happy to talk to you about the options and how they work. Simply ring +44(01624) 638888 to speak to our Client Support Specialists, but remember they can't give you financial or tax advice.